morning thoughts..
We said of the indices being in an over stretched zone and as it moves up it sets itself for a reaction on profit booking , well the indices reacted as expected and came down on mere profit taking at higher levels.
Technically the trend of the markets have not been compromised and the undertone of the markets still remains bullish , however the indices remains in an over bought zone and could see some more downsides before it finds any support and bounce back.
On the lowerside 5100 is a crucial support level on nifty front and a strong level to deal with , so any downfall will find cushion around that levels.
On the upside stiff resistance is likely to be witnessed around 5325 – 5350 levels and it’s a reactive zone for the indices.
Amidst the volatility and range bound movement of the indices , huge and major opportunities prevail in stock specific , so one needs to concentrate on them.
A typical bull market where sectoral shift is the essence , and we are witnessing the same from past few sessions , where each and every stock from a particular sector is seeing fresh momentum.
So as the indices presents a few and minimal opportunity to trade , individual stocks are giving maximum gains in terms of percentage.
Astrologically mercury is retrograde and Saturn is in virgo which will keep markets in a range and deception with sudden spikes and falls in markets and stocks , so one needs to be cautious and buy stocks on dips with a strategy until budget.
The f/o data of individual stocks are seeing continous build up in open interest with shed of oi in nifty futures and implied volatility beyond 30 , which indicates range bound movement with sudden spike and fall .
From a trading point of view , every rise could meet some selling pressure , so the right strategy could be buying on extreme dips and sell on rise , with immediate covering and profit booking , as the movement would be fast and quick.
Indices traders could buy out of money call options at extreme dips and out of money puts at every rise and book in small spread as it is unlikely that there will be major movements in spreads.
For individual stocks it will be a wise move to follow the same strategy in high beta , strong sectors ,and on right path the options can double.
The supports for the nifty is at 5100 levels and resistance at 5300 levels.
The supports for the sensex is at 17100 levels and resistance at 17800 levels.
Friday’s calls sent via sms and messenger
Nifty – sell at cmp 5275 sl 5291 targets 5240 , went 5236.40
Gail – buy at cmp 429.50 sl 427 targets 435 , went 435.30
Lic – buy at cmp 835.50 sl 832 targets 845 , went 847.40
Ivrcl infra – buy at cmp 391 sl 387 targets 398 ,went 395.20
Nifty 5200 pe – buy at cmp 75 sl 68 targets 90 , went 83.05
Btst Stc – buy at cmp 395 sl 390 targets 405 , achieved the same day
Jackpot Neyveli lignite – buy at cmp 164 sl x targets x – 2 days (booked full profits at 166.50 the same day)
Dii Bgr Energy – buy at cmp 536 sl x targets x – 2 days (booked full profits at 572 the same day)
Fii Jyoti structures – buy at cmp 181 sl x targets x – 2 days (booked full profits at 184 the same day)
Punter Idfc – buy at cmp 165.50 sl x targets x – holding
Secret Mascot Dlf – buy at cmp 383 sl x targets x – 2 days (booked full profits at 388 the same day)
Wednesday’s Fii Praj inds – booked full profits at 112.50 , long from 108.50
Wednesday’s Jackpot Jp associates – booked full profits at 165 , long from 162.50
Wednesday’s Dii Opto circuits – booked full profits at 244 , long from 241
Wednesday’s Punter Petronet lng – booked full profits at 78 , long from 76.40
Tuesday’s Secret Mascot Unitech – booked full profits at 85.80 , long from 84
